Sales Tax Preparing and Processing can be a confusing process for business owners. Understanding the taxability of each item, the tax rates in multiple locations, and filing deadlines can be a hassle when you are running a business.
At FACT Professional, inc. our accountants file sales tax returns for many industries. We have the expertise to ensure your business is set up correctly and filing sales tax returns accurately. Our firm offers monthly, quarterly, and yearly sales tax filing services to support your business activities.
What is Sales Tax Processing & why is it important?
Sales Tax is an additional tax charged by the seller to the consumer of a product. It is the responsibility of the seller to charge, collect and send that payment to the state government. Each city charges a different sales tax rate, in addition, different products may result in different rates as well.
While some online platforms may collect sales tax on behalf of the business, it is still the responsibility of the owner to ensure the sales tax is being collected, filed, and paid.
How do I know I am charging sales tax correctly?
Once you hire us as your sales tax preparers, we will review your current systems including the various merchant platforms and point of sale (POS) systems. After that review, our office will update you on the various changes or corrections that need to be made.
What will happen If I don’t file sales tax returns or charge sales tax to my customers?
State governments are quick in catching issues where you may not correctly charge and pay sales tax. This will likely audit your business for multiple years, charging sales tax and penalties for the missed years. It is critical to have a strong accounting firm supporting you in sales tax filing.
Do I have to file sales tax returns if I only have a few sales?
You still must file sales tax returns even with a handful of product sales. However, the frequency changes based on the number of sales and the amount of sales tax liability that is due. Sales Tax can be filed monthly, quarterly, or yearly depending on the activity of your business.
If I get a sales tax notice or audit how can FACT Professional, inc. assist?
Our accountants can support you in your sales tax audit. Please refer to the tax audit services for reference or give our office a call to go over your situation.
Does FACT Professional, Inc. handle sales tax filing for Gas Stations?
Yes, our office is very seasoned in filing sales tax returns and underground storage tank returns for gas stations. We support many clients in this industry.
Does FACT Professional, Inc. handle sales tax filing for Restaurants?
Our accountants have strong experience in the restaurant industry. We have insight into the sales tax process and operations of restaurants.
How do I know if the product or service I sell is subject to Sales Tax?
Depending on the state you are located in, you can confirm the taxability of the product or service on the state government’s website in the sales tax section.
If you hire FACT Professional, Inc. our office can consult with you on these issues and provide the knowledge you require.
Do I have to collect Sales Tax on my business in my home?
Many business owners assume that businesses with sales out of their homes are not considered taxable. This is not true, as a business owner regardless of the location you still need to obtain a Seller’s Permit, collect, report and pay sales tax.
What if I have Sales In Multiple States?
If your sales are online, the platform you are using may be handling the collection and payment of sales tax. Each state and locality will have a unique sales tax rate that needs to be collected and reported accordingly.
How often do Sales Tax Rates change?
Sales Tax Rates are typically subject to an annual change. It is critical to review information with your accountant and update your POS report when changes like this occur.
Should I be showing Sales Tax Charges on my invoices?
If you are selling a product or a taxable service, you should be charging and indicating sales tax on your invoices. This will aid in accurately consolidating the sales tax data when preparing your sales tax return.